Mazda Motor has announced that it will terminate its Auto Alliance International joint venture (JV) with Ford Motor Co. (F) in order to review its global production system. The Japanese automaker has decided to cease production for the joint venture from 2013.
Currently, the JV sells Mazda6 car in the U.S., which is manufactured as Atenza in Japan. After 2013, Mazda6 will be produced in a factory in Yamaguchi prefecture in Japan. Mazda will export cars, produced in Japan and Mexico, to the U.S. from 2013.
The partnership between Ford and Mazda began in 1979. Through the partnership, Ford intended to develop small and fuel-efficient cars using Mazda’s technology while Mazda depended on Ford to fund its research and development activities.
However, Ford loosened its ties with Mazda in 2008 by reducing its 33.4% stake in the latter to 13% and later to 11% in order to raise cash during the global economic crunch last year.
Consequently, Mazda sought Toyota Motor Corp.’s (TM) help last year to obtain key components of hybrid systems – batteries, motors, control units and other electronic parts – from the latter, through a hybrid technology tie-up.
Mazda and Ford share same engineering platforms and have joint production facilities in Asia. In August 2010, the tie-up announced their plan to invest $350 million in Auto Alliance plant in Rayong, Thailand. The investment will revamp the facility and will help building a redesigned version of their compact pickup trucks from mid-2011.
In June 2010, Auto Alliance had already enhanced the annual capacity of the plant from 100,000 units to 275,000 units by investing $450 million for a new plant. The JV plant manufactures passenger cars, including Mazda2 and Ford Fiesta, and pick up trucks, which are exported to more than 130 markets around the world.
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